Aerodrome Finance: Can AERO target $0.65 after a 22% weekly rally?

Aerodrome Finance [AERO] is on a strong upward run. Since holding $0.45 support four days ago, the altcoin has closed at higher highs.

As a result, the altcoin touched a high of $0.60 for the first time since January, then slightly retraced. At the time of writing, AERO was trading at $0.58, up 4.85% on the daily charts, adding to its 22% weekly surge. 

What do Aerodrome’s charts suggest?

AERO charts continued to show relative strength, with the uptrend holding strong. In fact, the altcoin held the $0.45 level as buyers returned with strength.

As a result, the altcoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 67 as of writing, indicating that buyers have a commanding control of the market. Often, buyer dominance has preceded extended upward movement. 

Even more so, the DMI Modified indicator further confirmed the strength of this trend. The DMI Modified jumped from 6 to 19, indicating the market started to develop a meaningful directional move. 

Taken together, these two momentum indicators suggest that the altcoin uptrend is strengthening and the prevailing trend could continue.  

What’s driving AERO’s ?

The altcoin has shown relative strength, supported by broad market demand. In derivatives trading, for instance, AERO’s Open Interest (OI) surged 10% to $56 million over the past day. 

In July, the altcoin’s OI increased by over $13 million, suggesting significant capital has flowed into opening new positions

On the spot side, a similar pattern emerged, with buyers having displaced sellers since the 2nd of July. According to Coinalyze data, AERO has closed with a positive buy-sell delta over the past three days. 

Over this period, the altcoin recorded 18.6 million in buy volume compared to 15.8 million in Sell volume. 

Exchange flow further confirms this market trend. According to CoinGlass, the Spot Netflow dropped to -$254k, down from $400k the previous day, a clear sign of buyers taking over.

Historically, strong demand on both derivatives and spot has preceded extended market rallies. Therefore, recovering market demand positions the altcoin for further gains on price charts.

Thus, if the prevailing bullish pressure holds, AERO will hold $0.6 and target $0.65 in the short- to medium-term. On the other side, if the altcoin fails to close above $0.6, the uptrend will weaken significantly. In doing so, the altcoin could lose $0.5 support and drop towards $0.46, where the current uptrend started.

Final Summary

• Aerodrome Finance extended its uptrend, hiking 4.85% to $0.6 for the first time since January before retracing to $0.58. 
• AERO experienced strong demand across the spot and derivatives market, as bulls eye more gains.